The Genesis of “Bradley’s Law”

A company should expect to pay for a specific electronic device – a price commensurate with their Competitiveness within that particular commodity.   This Competitiveness is the measure of how the supply chain sees that company.     Ken Bradley, Founder & CTO Lytica Inc. When Ken Bradley founded Lytica in 2005 as a consultancy practice, his primary areas of focus were setting up supply chains and price negotiations for Electronic OEMs. From his varied background within Nortel Networks (Silicon Process Engineer, Operations Manager,...

Manufacturing Sector- The Growth Engine of the Economy

GDP dynamics - An important factor for developing supply chain strategies Manufacturing sector has been the growth engine of the global economy for the better part of the last two centuries. The transition from an agrarian to manufacturing economy is still an important indicator of growth, prosperity and rise in living standards for a country. For developing nations, improving and investing in the manufacturing sector continue to be a strategic focus area. Even for a country like India, which has a...

Will Electronic Distributors Disappear? (Part2)

Is the current distribution model sustainable in the future? To answer this question, let us re-examine whether the three prerequisites mentioned in WILL ELECTRONIC COMPONENT DISTRIBUTORS DISAPPEAR? (PART 1) will continue to exist for the distribution businesses. Re-cap of the prerequisites: They keep inventory to provide materials to buyers faster than manufacturers do. It is costly for manufacturers to manage many small customers. Information asymmetry provides a profitable earnings opportunity through the gap between selling and purchasing price. Re-examination of these prerequisites: ...

Take the Embedded Inefficiencies Test

I have been absent from the blog scene for the past few months because I have been working in China with an LED light bulb manufacturer. This is an exciting, fast-paced, high growth industry under intense pressure for cost improvement and product innovation. While working with this company, I am getting a refresher on Chinese companies and the environment in which they work. I have not worked intensely in China in over 20 years so it is interesting to see...

6 Obstacles to Achieving Cost-Reduction Goals

Lytica Inc. tracks current prices paid – not distributor website prices – on about one million electronic components and uses this information to assess our clients’ spending competitiveness and estimate appropriate pricing for their worst price components. In many cases, we assist customers in implementing better pricing in their supply chain. From this vantage point we’ve identified a number of factors that often lead to companies not achieving their cost-reduction potential. Here are the obstacles:   1. Use of the 80/20...

Supply Chain Structure Should Not Baffle Electronics Design Engineers

Last month I made a presentation to the IEEE Consumer Electronics Group in San Jose, CA. I asked this group of engineers a very important question. It was important because of the implications that designer choices have on the supply chain. I started with my left hand holding the top of a slinky and my right hand supporting it underneath; when I took my right hand away the slinky elongated and oscillated up and down as I asked the question...

5 Areas Engineers Impact Procurement

In putting together the slides for a technical review, I realized that two thirds of the staff at Lytica have technical degrees; mostly electrical engineering but also computer science, mathematics and related fields. While not a total surprise, it is unusual to have this technical depth in a supply chain company and it is also a reason why Lytica has such a strong focus on component engineering and a passion for educating designers about supply chain design. One of our...

Why I Am Fixated on Cost & Competitiveness

Maybe I'm fixated on cost and competitiveness, but over Christmas, two things happened that drove me to ponder these themes. The first is that I was given a Boxee Box as a gift; the second is a technology, entertainment, and design (TED) lecture that I heard via Boxee by an incredible 19-year-old woman named Eva Vertes. The Boxee Box is neither a new nor unique product as there are similar offerings in the marketplace. It brings content to your TV...

Many Advantages of a Strong Knowledge Chain

Knowledge chains enable supply chain performance. They bring together the information and context that let you make decisions and take actions. Gaps in a supply chain are noticed and fixed immediately, but holes in a knowledge chain often go undetected. This is because supply chain gaps are usually catastrophic, but knowledge gaps are performance-limiting. How do you know what you don't know and whether it could lead to better decisions? I will give you an example from one of our...